Activity in China's manufacturing sector fell to an 11-month low in July following decline in new orders.
HSBC's Purchasing Managers' Index (PMI), which is a key indicator of activity in the sector and a reading below 50 shows contraction, fell to 47.7 from 48.2 in June.
According to the BBC, this is the third month in a row that the HSBC reading has been below that level.
Data released earlier this month showed that China's economic growth slowed in the April to June period, the second straight quarter of weaker expansion.
China's manufacturing and export sectors have been key drivers of its economic growth over the past decades.
However, demand for the country's exports has slowed recently, especially from key markets such as the US and Europe as they grapple with slowing economic growth, the report added.
